2018 Loyalty Program Consumer Survey

Transcription

1 Hotel 2018 Loyalty Program Consumer Survey How today s travelers want to engage with hotel loyalty programs

2 About CodeBroker CodeBroker s mobile marketing solutions are used by leading brands to engage consumers, drive purchases, and build loyalty. The CodeBroker Mobile Loyalty Experience Engine gives loyalty marketers a true omnichannel approach to mobile loyalty program member acquisition and engagement. CodeBroker Text Message Marketing with SmartJoin combines advanced SMS marketing capabilities with ease-of-use to help marketers rapidly build and market to subscriber lists and loyalty membership securely and at scale. CodeBroker Digital Coupons drive purchases and customer engagement through on-demand offers, SMS list promotions and in-app promos. We invite you to learn more at 1

3 Survey Overview CodeBroker surveyed 1,287 consumers who are members of loyalty programs in a range of industries, including travel, restaurant, credit card, retail and others. Those cross-industry research results can be accessed here. This report is a subset of the of the larger research, and focuses on 464 consumers who belong to hotel loyalty programs. We asked members about their frustrations associated with hotel loyalty programs, how they would like to engage with loyalty programs, and changes they would like to see. About the Survey Respondents 464 U.S hotel loyalty program members. Age range: 18 to 35: 45% 35 to 50: 31% 50+: 24% Gender: Female: 58% Male: 42% Number of loyalty programs respondents belong to: 1-5: 82% 6 10: 14% 10+: 4% 2

4 Key Takeaways 1. Only 13% actively engage with all the loyalty programs to which they are members. 63% of the respondents engage with less than one-quarter of the loyalty programs to which they belong % consumers say that they would actively engage with loyalty programs if they could access their rewards information from their smartphones. 3. Only 32% of consumers want to access loyalty programs via a mobile app. 4. Consumers have a range of preferences for accessing and engaging with loyalty programs via mobile including SMS, app, digital wallet, and For the broadest reach, loyalty programs must be accessible to consumers through several mobile channels to appeal to each individual consumer s preferred channel. 3

5 The Results 4

6 Of the loyalty programs you belong to, what percentage do you actively use? 68% 43% 20% 13% Engage with less than half the loyalty programs to which they belong Engage with less than one-quarter of the loyalty programs to which they belong Engage with ten percent of the loyalty programs to which they belong Engage with all the loyalty programs in which they belong This data is consistent with what we hear from loyalty executives that program engagement is suffering due to a range of factors, from more loyalty program competition, to uncertainties about the best contact strategy for each individual customer. The data is also consistent with the responses from other industries. 5

7 What is your biggest gripe with hotel loyalty programs? 23% Don t know when I have rewards available 34% My rewards expired before I could use them 14% Carrying the card 8% I forget to bring paper certificates to redeem rewards 12% It s hard to access my rewards information A majority of respondents lack basic insights into their rewards which is consistent with data from the cross-industry survey. Many of the respondents comments point to the complexities associated with program participation, which drives engagement down and limits the insights that consumers have into their rewards status. What respondents had to say It's hard to get the total points needed in order to receive my rewards. At times, I forget the password. Too much hassle. Not clear evidence of the value of reward points. I don't know when I have rewards available. 6

8 What are your top frustrations associated with accessing your rewards, point balance and other program information? I can t do it easily from my mobile device or I have to download and use a mobile app 53% 42% I have to log in to a website When compared to consumers in other industries, a slightly higher number of hotel loyalty members are frustrated by their inability to access their rewards information easily form their mobile phones, with a slightly smaller number bothered by having to log in to a website. As with customers from other sectors, hotel loyalty members also cite having to download an app as a top frustration. What respondents had to say I forget about them and there are few reminders. I never remember my password. Creating username or security questions adds to inconvenience. Remembering my rewards number. I have to pull the data, the program should push the data to me. 7

9 Would you be more likely to participate in a hotel loyalty program if you could access the program easily from your smartphone? Yes 80% 24 % No Card-based loyalty programs no longer work for most consumers across all industries, with a high percentage saying that they would engage more actively with loyalty programs if they could do so easily from their smartphones. A higher percentage of hotel loyalty members prefer to participate via their smartphones when compared to other industries (85% to 75%). What respondents had to say If it is easy to access and use. Maybe, but not if it requires an app. As long as I don t have to download an app to my phone. 8

10 What is your preferred method for accessing your hotel rewards program info (points balance, redemption info, available rewards, etc.)? 36% Smartphone - via a link in a text message 32% Smartphone - through a mobile app 14% Website from my computer 11% Smartphone - digital wallet (Apple Wallet; Android Pay) 3% Facebook Messenger Mobile is a platform with several communication channels, and a channel preferred by one consumer may not be favored by another. Many hotels have employed their loyalty programs via a mobile app in the belief that they have a mobile loyalty program. However, only 32% of travelers wish to engage with hotel loyalty programs via a mobile app. To engage members most effectively, loyalty programs must give each member program access via his or her preferred mobile channel. What respondents had to say With no login. Link that the company pushes to me. I hate apps for everything nowadays. Crap never works right. Apps take up too much storage space. I don't like that I have to download 80 different apps and waste space on my phone to participate in rewards programs. 9

11 What is your preferred method to receive communications from your hotel rewards program? 47% 32% 19% 1% Text Message Mobile App Facebook Messenger Each customer not only has a preferred channel to access loyalty programs, but also has a preferred channel to receive loyalty program communications, such as rewards updates, expiring rewards, promotions, etc. The data from hotel loyalty program members is consistent with loyalty program members from other industries. The challenge for loyalty marketers is that we often don t know the communication method preferred by each individual member. By employing the right contact strategy for each member, loyalty marketers can improve member insights into rewards status and drive higher levels of engagement and ensure more relevant, consistent messaging across channels. Loyalty marketers can take steps to identifying members preferred communication channel by providing a range of sign-up options on the front-end. Consumers will more often sign up via their preferred channel, giving marketers the information they need to communicate effectively. 10

12 Where to Go from Here Meeting the needs of each member this is the new imperative for hotel loyalty programs. The majority of today s travelers want it to be easy to access loyalty programs and their preferences vary, which present both a challenge, and an opportunity for loyalty program leaders. Loyalty programs that give members options for program sign-up, access, and communications have the best opportunity to improve engagement, compete effectively with other programs and to deliver a positive program ROI. CodeBroker invites you to learn how to add these omnichannel loyalty program capabilities to your existing loyalty platform with the CodeBroker Mobile Loyalty Experience Engine. Contact CodeBroker to learn more info@codebroker.com Phone: Website: 11